Industry Analysis & Industry Trends
Out of the woods
The weak housing market caused wood prices to plummet, hampering industry growth. While operators will continue to be threatened by volatile prices and natural threats like the mountain pine beetle, demand will strengthen considerably. In particular, the upturn in housing starts and decline in competition from Canada will be strong drivers of demand over the next five years... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld estimates that the Timber Services industry has a low level of capital intensity. During 2012, for every $1.00 spent on wages, the average industry will spend $0.18 in capital investment. Capital intensity declined slightly over the past five years. The change is largely due to delayed upgrades and downsizing among industry operators, to reduce operating expenses. Capital intensity for timber service providers is in line with the rest of the US Forestry sector, which has a significant degree of capital investment to improve employee productivity and thus reduce operating expenses.
In order to maintain vast tracts of forest land while maintaining low prices, industry operators have increasingly invested in technological improvements to increase employee efficiency... purchase to read more